Liquidations Record: Chaos Is Taking Over The Crypto Market

As we hoped the end of the year would bring some calm to the crypto asset market, a completely different scenario unfolded. In just 24 hours, over one billion dollars were liquidated, demonstrating investors’ unpreparedness for volatility. A recap of the events, between massive liquidations and the prospects of a potential “Santa rally”.

A story of liquidations: 1 billion dollars vanished

The day of December 19 marked a brutal turning point, with 1.02 billion dollars liquidated, including 856.7 million in long positions. Among the victims was bitcoin (BTC), which collapsed by showing a decrease of 3.36%, breaking the symbolic threshold of 100,000 dollars to reach 97,350 dollars.

This wave of liquidations spared the market as a whole, already weakened by a drop of 5.47% on December 5 and record losses of 1.7 billion on December 10.

The numbers speak for themselves:

• 24 hours, 1.02 billion dollars liquidated;
• 856.7 million long positions crushed;
• Bitcoin price below the psychological 100,000 dollars.

Bitcoin is the best trade you will probably ever see.
There is exactly one way to screw it up.
Leverage.

— Fred Krueger (@dotkrueger) December 19, 2024

Fred Krueger, a bitcoin maximalist, does not mince his words: ” Bitcoin is the best trading opportunity you will probably see. There is only one way to miss it: leverage. “

A calm in sight for crypto-assets?

Despite this tumultuous context, some analysts want to believe in a rapid recovery. Pav Hundal, a lead analyst at Swyftx, sees this chaos as a passing anxiety, predicting a rebound with the highly anticipated “Santa rally”.

For his part, Caleb Franzen reminds us that past bull runs have often been punctuated by similar corrections, followed by new peaks. ” Hang on tight “, he advises.

Meanwhile, eyes are turning to 2025 and the possible repercussions of Donald Trump’s return to the White House. With speculation around a strategic bitcoin reserve for the United States, the market could be shaken by increased volatility as this deadline approaches.

Massive liquidations, although frightening, remind us of their catalytic role. In November, they even pushed bitcoin to 97,000 $, proof that these turmoils are just a step in the march toward new heights.